Online fails to buoy christmas sales in Europe but a return to growth is forecast in 2013

As expected, Christmas trading was tough. Retail sales fell in most markets, although these declines were only significant in Spain and Portugal, and retailer failures increased as too many retailers chased flat or declining demand. But there were also winners. Sales grew strongly in Russia, value and luxury retailers performed well and some multichannel retailers reported excellent growth, particularly with their online platforms. Whilst disposable incomes will remain under pressure for the foreseeable future, retailer sentiment has recently improved, suggesting a return to positive retail sales growth in 2013.